$A higher despite euro sell-off

The Australian dollar is slightly higher as a sell-off in the euro currency weighs against positive sentiment from US employment figures released late last week.

At 12.00pm AEDT on Monday, the currency was trading at 104.82 US cents, up from 104.78 US cents on Friday afternoon.

Easy Forex currency dealer Tony Darvall said the sell-off in the euro was weighing against the Australian dollar.

The euro has fallen against major currencies after Italian Prime Minister Mario Monti announced his intention to resign.

But Mr Darvall said the currency had started the week strongly following the release of US non-farm payrolls figures on Friday night, which showed the unemployment rate fell to 7.7 per cent in November.

He said the negative sentiment surrounding the euro, along with the expected release of Chinese trade data, would drive the Australian dollar's movements on Monday afternoon.

"If the euro can withstand this big-sell off we've had you might see the Aussie break above 105 US cents," he said.

"Also, if the trade data comes in stronger than forecast that will help the Aussie."